/ CORRECTION - CONMED Corporation Fourth Quarter 2013 Financial
Results Exceed Company Guidance
UTICA, NY--(Marketwired - Feb 13, 2014) - In the news release,
"CONMED Corporation Fourth Quarter 2013 Financial Results Exceed
Company Guidance," issued earlier today by CONMED Corporation
(NASDAQ: CNMD), please be advised that the table headings "Twelve
months ended December 31" and "Three months ended December 31"
should have been switched for tables RECONCILIATION OF INCOME FROM
OPERATIONS TO ADJUSTED INCOME FROM OPERATIONS and RECONCILIATION OF
REPORTED NET INCOME TO EBITDA & ADJUSTED EBITDA. Complete
corrected text follows.
CONMED Corporation Fourth Quarter 2013 Financial Results Exceed
Company Guidance
UTICA, NY -- Feb 13, 2014 -- CONMED Corporation (NASDAQ:
CNMD)
- Record Quarterly Sales of $203.4 million
- EPS of $0.36
- Adjusted EPS of $0.53
- Conference Call to be Held at 10:00 a.m. ET Today
CONMED Corporation (NASDAQ: CNMD) today announced financial
results for the fourth quarter and year ended December 31,
2013.
"We exited 2013 with strong sales and earnings that exceeded the
high end of our guidance for both metrics," said Mr. Joseph J.
Corasanti, President and CEO. "Fourth quarter 2013 sales of $203.4
million grew 2.1% on a constant currency basis, compared with a
strong performance in the fourth quarter of 2012, and were driven
by stronger-than-anticipated sales in Europe and capital equipment
products sales. We also achieved sales growth for our single-use
and capital products and improved our adjusted gross margins, which
led to better-than-expected adjusted earnings per share of $0.53
for the fourth quarter."
Fourth Quarter 2013 Financial Highlights:
- Sales were $203.4 million, up 2.1% on a constant currency basis
compared with the fourth quarter of 2012; both single-use and
capital products grew in excess of 2.0% on an FX neutral
basis.
- International sales in the fourth quarter of 2013 were $102.7
million, representing 50.5% of total sales. Foreign currency
exchange rates, including the effects of the FX hedging program,
had a negative impact of $2.0 million in the fourth quarter of
2013.
- Diluted earnings per share (GAAP) (EPS) were $0.36 compared
with $0.38 in the fourth quarter of 2012. Excluding the Medical
Device Excise Tax, (MDET) EPS was $0.40 in the fourth quarter of
2013.
- Adjusted diluted earnings per share were $0.53 in the fourth
quarter of 2013 compared with $0.52 in the same quarter of 2012.
Excluding the MDET, adjusted EPS was $0.57 in the fourth quarter of
2013.
- Adjusted EBITDA margin was 18.1%, consistent with the prior
year period. Excluding the MDET in 2013, adjusted EBITDA
margin for the fourth quarter of 2013 was 18.9%.
- The Board of Directors declared a quarterly cash dividend of
$0.20 per share, which was paid on January 6, 2014. This quarterly
dividend was 33% higher than the prior quarterly cash dividend of
$0.15 per share. Based upon the stock price on February 12, 2014,
on an annualized basis, the dividend provides investors with a
yield of nearly 2%.
Year 2013 Financial Highlights
- Sales for 2013 were $762.7 million, up 0.2% on a constant
currency basis compared with 2012, resulting from a 0.4% increase
in single-use products and a 0.8% decline in capital equipment on
an FX neutral basis.
- International sales for full year 2013 were $387.2 million,
representing 50.8% of total sales. Foreign currency exchange rates,
including the effects of the FX hedging program, had a negative
impact of $5.7 million on full year 2013.
- Diluted earnings per share (GAAP) were $1.28 in the 2013
compared with $1.41 in 2012. Excluding the MDET, EPS was $1.41 in
2013.
- Adjusted diluted earnings per share were $1.81 in 2013 compared
with $1.80 in 2012. Excluding the MDET, adjusted EPS was $1.94 in
2013.
- Adjusted EBITDA margin was 17.2% in 2013 compared with 17.4% in
2012. Excluding the MDET in 2013, adjusted EBITDA margin for
the year was 18.0%.
CONMED generated $27.3 million in cash from operating activities
in the fourth quarter of 2013. For 2013, the Company generated
$80.9 million in cash from operating activities, more than double
the net income for the year. The Company repurchased 1,577,800
shares of its common stock for $50.6 million in 2013 at an average
price of $32.04 per share.
Outlook
"We are encouraged by the sales growth acceleration we achieved
throughout 2013, particularly in our single-use surgical devices,
and are optimistic that the positive trends in surgical procedure
growth in both the domestic and international markets will support
our continued progress," continued Mr. Corasanti. "We have a
dynamic financial model and higher-margin single-use products
comprise 80% of CONMED's sales with the remaining 20% of sales
resulting from surgical devices that fall under the capital
expenditure budgets of our hospital customers. Despite the
headwinds our capital products faced throughout 2013 due to
continued budgetary restraints at hospitals in the United States
and public healthcare systems in other countries, we achieved sales
growth among these products that exceeded our expectations for the
fourth quarter. Looking forward to 2014, we believe that continued
modest improvement in the global economy will allow CONMED to
achieve annual sales growth and we are reiterating our 2014 sales
and adjusted earnings per share guidance. This forecast is based on
our expectations for continued sales growth for our single-use
products and continued sales improvement for our capital products
as the capital equipment replacement cycle normalizes."
For the first quarter of 2014 CONMED expects to achieve:
- Sales in the range of $191 to $196 million; and
- Adjusted earnings per share between $0.45 and $0.49.
For the full year 2014 CONMED expects to achieve:
- Sales in the range of $770 to $780 million;
- Adjusted earnings per share between $1.90 and $2.00; and
- Approximately 50 basis point improvement in adjusted operating
and EBITDA margins.
The adjusted estimates for the first quarter and full year 2014
exclude special items, such as manufacturing restructuring costs
expected to be incurred due to relocation of manufacturing
activities and patent litigation expense.
Special
charges
During the fourth quarter of 2013, the Company continued the
on-going consolidation of certain administrative functions and
manufacturing activities. Also incurred were litigation costs
associated with patent litigation. Further, during the fourth
quarter of 2013, the Company incurred a non-cash expense from the
settlement of certain pension obligations. Expenses associated
with these activities, including severance and relocation costs,
amounted to $4.7 million, net of tax, in the fourth quarter of
2013. These charges are included in the GAAP earnings per
share set forth above and are excluded from the adjusted
results. For 2014, the Company presently anticipates incurring
additional pre-tax special costs of $4.0 - 5.0 million on projects
currently in process.
Use of non-GAAP
financial measures
Management has disclosed adjusted financial measurements in this
press announcement that present financial information that is not
in accordance with generally accepted accounting
principles. These measurements are not a substitute for GAAP
measurements, although Company management uses these measurements
as aids in monitoring the Company's on-going financial performance
from quarter-to-quarter and year-to-year on a regular basis, and
for benchmarking against other medical technology
companies. Adjusted net income, adjusted operating income and
adjusted earnings per share measure the income of the Company
excluding credits or charges that are considered by management to
be outside of the normal on-going operations of the
Company. Management uses and presents adjusted net income,
adjusted operating margin and adjusted earnings per share because
management believes that in order to properly understand the
Company's short and long-term financial trends, the impact of
special items should be eliminated from on-going operating
activities. These adjustments for special items are derived
from facts and circumstances that vary in frequency and impact on
the Company's results of operations. Management uses adjusted
net income, adjusted operating income and adjusted earnings per
share to forecast and evaluate the operational performance of the
Company as well as to compare results of current periods to prior
periods on a consistent basis. Further, the presentation of
EBITDA is a non-GAAP measurement that management considers useful
for measuring aspects of the Company's cash flow. Adjusted
financial measures used by the Company may be calculated
differently from, and therefore may not be comparable to, similarly
titled measures used by other companies. Investors should
consider adjusted measures in addition to, and not as a substitute
for, or superior to, financial performance measures prepared in
accordance with GAAP.
Conference
call
The Company will webcast its fourth quarter 2013 conference call
live over the Internet at 10:00 a.m. Eastern Time on Thursday,
February 13, 2014. This webcast can be accessed from CONMED's
web site at www.conmed.com. Replays of the call will be made
available through February 21, 2014.
CONMED
profile
CONMED is a medical technology company with an emphasis on
surgical devices and equipment for minimally invasive procedures.
The Company's products are used by surgeons and physicians in a
variety of specialties including orthopedics, general surgery,
gynecology, neurosurgery and gastroenterology. Headquartered
in Utica, New York, the Company's 3,600 employees distribute its
products worldwide from several manufacturing locations. CONMED has
a direct selling presence in 16 countries outside the United States
and international sales constitute approximately 50% of the
Company's total sales.
Forward Looking
Information
This press release contains forward-looking statements based
on certain assumptions and contingencies that involve risks and
uncertainties. The forward-looking statements are made
pursuant to the safe harbor provisions of the Private Securities
Litigation Reform Act of 1995 and relate to the Company's
performance on a going-forward basis. The forward-looking
statements in this press release involve risks and uncertainties
which could cause actual results, performance or trends, to differ
materially from those expressed in the forward-looking statements
herein or in previous disclosures. The Company believes that
all forward-looking statements made by it have a reasonable basis,
but there can be no assurance that management's expectations,
beliefs or projections as expressed in the forward-looking
statements will actually occur or prove to be correct. In
addition to general industry and economic conditions, factors that
could cause actual results to differ materially from those
discussed in the forward-looking statements in this press release
include, but are not limited to: (i) the failure of any one or more
of the assumptions stated above, to prove to be correct; (ii) the
risks relating to forward-looking statements discussed in the
Company's Annual Report on Form 10-K for the fiscal year ended
December 31, 2012; (iii) cyclical purchasing patterns from
customers, end-users and dealers; (iv) timely release of new
products, and acceptance of such new products by the market; (v)
the introduction of new products by competitors and other
competitive responses; (vi) the possibility that any new
acquisition or other transaction may require the Company to
reconsider its financial assumptions and goals/targets; (vii)
increasing costs for raw material, transportation or litigation;
(viii) the risk of a lack of allograft tissues due to reduced
donations of such tissues or due to tissues not meeting the
appropriate high standards for screening and/or processing of such
tissues; and/or (ix) the Company's ability to devise and execute
strategies to respond to market conditions.
|
|
CONMED CORPORATION |
CONSOLIDATED STATEMENTS OF INCOME |
(In thousands except per share amounts) |
(unaudited) |
|
|
|
|
|
|
|
|
|
|
|
Three months ended December 31, |
|
Twelve months ended December 31, |
|
|
2012 |
|
2013 |
|
2012 |
|
2013 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Net sales |
|
$ |
201,244 |
|
$ |
203,442 |
|
$ |
767,140 |
|
$ |
762,704 |
Cost of sales |
|
|
91,424 |
|
|
89,910 |
|
|
354,245 |
|
|
341,661 |
Cost of sales, other - Note A |
|
|
2,533 |
|
|
2,137 |
|
|
7,052 |
|
|
8,626 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Gross profit |
|
|
107,287 |
|
|
111,395 |
|
|
405,843 |
|
|
412,417 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Selling and administrative |
|
|
79,892 |
|
|
82,355 |
|
|
302,469 |
|
|
310,730 |
Research and development |
|
|
6,850 |
|
|
6,438 |
|
|
28,214 |
|
|
25,831 |
Medical device excise tax |
|
|
- |
|
|
1,536 |
|
|
- |
|
|
5,949 |
Other expense- Note B |
|
|
3,529 |
|
|
4,885 |
|
|
9,950 |
|
|
13,399 |
|
|
|
90,271 |
|
|
95,214 |
|
|
340,633 |
|
|
355,909 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Income from operations |
|
|
17,016 |
|
|
16,181 |
|
|
65,210 |
|
|
56,508 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Loss on early extinguishment of debt |
|
|
- |
|
|
- |
|
|
- |
|
|
263 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest expense |
|
|
1,397 |
|
|
1,482 |
|
|
5,730 |
|
|
5,613 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Income before income taxes |
|
|
15,619 |
|
|
14,699 |
|
|
59,480 |
|
|
50,632 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Provision for income taxes |
|
|
4,722 |
|
|
4,472 |
|
|
18,999 |
|
|
14,693 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income |
|
$ |
10,897 |
|
$ |
10,227 |
|
$ |
40,481 |
|
$ |
35,939 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Per share data: |
|
|
|
|
|
|
|
|
|
|
|
|
|
Net
income |
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic |
|
$ |
.38 |
|
$ |
.37 |
|
$ |
1.43 |
|
$ |
1.30 |
|
Diluted |
|
|
.38 |
|
|
.36 |
|
|
1.41 |
|
|
1.28 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average common shares |
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic |
|
|
28,408 |
|
|
27,644 |
|
|
28,301 |
|
|
27,722 |
|
Diluted |
|
|
28,727 |
|
|
28,062 |
|
|
28,653 |
|
|
28,114 |
Note A -
Included in cost of sales, other in the three and twelve months
ended December 31, 2012 and 2013 are costs related to the
consolidation of our production facilities. Also included in the
twelve months ended December 31, 2013 are costs associated with the
termination of a product offering. Refer to the Reconciliation
of Reported Net Income to Adjusted Net Income for further
details.
Note B - Other
expense in the three and twelve months ended December 31, 2012 and
2013 includes a number of adjusted charges. Refer to the
Reconciliation of Reported Net Income to Adjusted Net Income for
further details.
|
|
|
|
CONMED CORPORATION |
|
CONSOLIDATED CONDENSED BALANCE SHEETS |
|
(in thousands) |
|
(unaudited) |
|
ASSETS |
|
|
|
|
|
|
|
December 31, |
|
|
|
2012 |
|
|
2013 |
|
Current assets: |
|
|
|
|
|
|
|
|
|
Cash and cash equivalents |
|
$ |
23,720 |
|
|
$ |
54,443 |
|
|
Accounts receivable, net |
|
|
139,124 |
|
|
|
140,426 |
|
|
Inventories |
|
|
156,228 |
|
|
|
143,211 |
|
|
Income taxes receivable |
|
|
2,897 |
|
|
|
3,805 |
|
|
Deferred income taxes |
|
|
11,931 |
|
|
|
13,202 |
|
|
Prepaid expenses and other current assets |
|
|
14,993 |
|
|
|
17,045 |
|
|
|
Total
current assets |
|
|
348,893 |
|
|
|
372,132 |
|
|
|
|
|
|
|
|
|
|
Property, plant and equipment, net |
|
|
139,041 |
|
|
|
138,985 |
|
Deferred income taxes |
|
|
1,057 |
|
|
|
1,183 |
|
Goodwill |
|
|
248,502 |
|
|
|
248,428 |
|
Other intangible assets, net |
|
|
334,185 |
|
|
|
319,440 |
|
Other assets |
|
|
7,171 |
|
|
|
10,340 |
|
|
|
Total
assets |
|
$ |
1,078,849 |
|
|
$ |
1,090,508 |
|
|
|
|
|
|
|
|
|
|
LIABILITIES AND SHAREHOLDERS' EQUITY |
|
|
|
|
|
|
|
|
Current liabilities: |
|
|
|
|
|
|
|
|
|
Current portion of long-term debt |
|
$ |
1,050 |
|
|
$ |
1,140 |
|
|
Other current liabilities |
|
|
124,164 |
|
|
|
110,125 |
|
|
|
Total
current liabilities |
|
|
125,214 |
|
|
|
111,265 |
|
|
|
|
|
|
|
|
|
|
Long-term debt |
|
|
160,802 |
|
|
|
214,435 |
|
Deferred income taxes |
|
|
99,199 |
|
|
|
113,199 |
|
Other long-term liabilities |
|
|
86,636 |
|
|
|
45,290 |
|
|
|
Total
liabilities |
|
|
471,851 |
|
|
|
484,189 |
|
|
|
|
|
|
|
|
|
|
Shareholders' equity: |
|
|
|
|
|
|
|
|
|
Capital accounts |
|
|
256,672 |
|
|
|
228,002 |
|
|
Retained earnings |
|
|
377,907 |
|
|
|
395,889 |
|
|
Accumulated other comprehensive loss |
|
|
(27,581 |
) |
|
|
(17,572 |
) |
|
|
Total
equity |
|
|
606,998 |
|
|
|
606,319 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
liabilities and shareholders' equity |
|
$ |
1,078,849 |
|
|
$ |
1,090,508 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
CONMED CORPORATION |
CONSOLIDATED CONDENSED STATEMENTS OF CASH FLOWS |
(in thousands) |
(unaudited) |
|
|
|
|
|
|
Twelve months ended |
|
|
|
December 31, |
|
|
|
2012 |
|
|
2013 |
|
Cash flows from operating activities: |
|
|
|
|
|
|
|
|
|
Net income |
|
$ |
40,481 |
|
|
$ |
35,939 |
|
|
Adjustments to reconcile net incometo net cash provided
by operating activities: |
|
|
|
|
|
|
|
|
|
Depreciation and amortization |
|
|
46,616 |
|
|
|
47,867 |
|
|
Stock-based compensation |
|
|
5,653 |
|
|
|
5,593 |
|
|
Loss on early extinguishment of debt |
|
|
- |
|
|
|
263 |
|
|
Deferred income taxes |
|
|
12,946 |
|
|
|
7,218 |
|
|
|
Increase (decrease) in cash flows from changes in
assets and liabilities: |
|
|
|
|
|
|
|
|
|
|
|
Accounts receivable |
|
|
1,687 |
|
|
|
(798 |
) |
|
|
|
Inventories |
|
|
3,810 |
|
|
|
(1,817 |
) |
|
|
|
Accounts payable |
|
|
259 |
|
|
|
4,223 |
|
|
|
|
Income taxes receivable (payable) |
|
|
(6,651 |
) |
|
|
(1,519 |
) |
|
|
|
Accrued compensation and benefits |
|
|
767 |
|
|
|
(71 |
) |
|
|
|
Other
assets |
|
|
(1,210 |
) |
|
|
(5,222 |
) |
|
|
|
Other
liabilities |
|
|
(9,159 |
) |
|
|
(10,727 |
) |
|
Net cash provided by operating activities |
|
|
95,199 |
|
|
|
80,949 |
|
|
|
|
|
|
|
|
|
|
Cash flows from investing activities: |
|
|
|
|
|
|
|
|
|
|
|
Payments related to business acquisition and distribution
agreement, net of cash acquired |
|
|
(86,253 |
) |
|
|
- |
|
|
|
|
Proceeds from sale of property |
|
|
1,836 |
|
|
|
- |
|
|
|
|
Purchases of property, plant, and equipment |
|
|
(21,532 |
) |
|
|
(18,445 |
) |
|
Net cash used in investing activities |
|
|
(105,949 |
) |
|
|
(18,445 |
) |
|
|
|
|
|
|
|
|
|
Cash flows from financing activities: |
|
|
|
|
|
|
|
|
|
|
|
Payments on debt |
|
|
(54,657 |
) |
|
|
(1,277 |
) |
|
|
|
Proceeds of debt |
|
|
73,000 |
|
|
|
55,000 |
|
|
|
|
Payments related to distribution agreement |
|
|
- |
|
|
|
(34,000 |
) |
|
|
|
Dividends paid on common stock |
|
|
(12,862 |
) |
|
|
(16,696 |
) |
|
|
|
Payments related to issuance of debt |
|
|
- |
|
|
|
(1,725 |
) |
|
|
|
Net
proceeds from common stock issued under employee plans |
|
|
10,165 |
|
|
|
17,264 |
|
|
|
|
Repurchase of common stock |
|
|
(3,923 |
) |
|
|
(50,556 |
) |
|
|
|
Other, net |
|
|
(370 |
) |
|
|
694 |
|
|
Net cash provided by (used in) financing
activities |
|
|
11,353 |
|
|
|
(31,296 |
) |
|
|
|
|
|
|
|
|
|
Effect of exchange rate change on cash and cash
equivalents |
|
|
(2,931 |
) |
|
|
(485 |
) |
|
|
|
|
|
|
|
|
|
Net increase (decrease) in cash and cash
equivalents |
|
|
(2,328 |
) |
|
|
30,723 |
|
|
|
|
|
|
|
|
|
|
Cash and cash equivalents at beginning of period |
|
|
26,048 |
|
|
|
23,720 |
|
|
|
|
|
|
|
|
|
|
Cash and cash equivalents at end of period |
|
$ |
23,720 |
|
|
$ |
54,443 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
CONMED CORPORATION |
|
RECONCILIATION OF REPORTED NET INCOME TO ADJUSTED NET
INCOME |
|
Three Months Ended December 31, 2012 and 2013 |
|
(In thousands except per share amounts) |
|
(unaudited) |
|
|
|
|
|
|
|
|
|
|
2012 |
|
|
2013 |
|
|
|
|
|
|
|
|
|
|
Reported net income |
|
$ |
10,897 |
|
|
$ |
10,227 |
|
|
|
|
|
|
|
|
|
|
Facility consolidation costs |
|
|
2,533 |
|
|
|
2,137 |
|
|
|
|
|
|
|
|
|
|
|
Total
cost of sales |
|
|
2,533 |
|
|
|
2,137 |
|
|
|
|
|
|
|
|
|
|
Administrative consolidation costs included in other
expense |
|
|
3,053 |
|
|
|
2,447 |
|
|
|
|
|
|
|
|
|
|
Costs associated with purchase of a business |
|
|
476 |
|
|
|
- |
|
|
|
|
|
|
|
|
|
|
Patent dispute costs included in other expense |
|
|
- |
|
|
|
995 |
|
|
|
|
|
|
|
|
|
|
Pension settlement expense |
|
|
- |
|
|
|
1,443 |
|
|
|
|
|
|
|
|
|
|
|
Total
other expense |
|
|
3,529 |
|
|
|
4,885 |
|
|
|
|
|
|
|
|
|
|
Adjusted expense before income taxes |
|
|
6,062 |
|
|
|
7,022 |
|
|
|
|
|
|
|
|
|
|
Provision (benefit) for income taxes on adjusted
expenses |
|
|
(2,074 |
) |
|
|
(2,351 |
) |
|
|
|
|
|
|
|
|
|
Adjusted net income |
|
$ |
14,885 |
|
|
$ |
14,898 |
|
|
|
|
|
|
|
|
|
|
Per share data: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Reported net income |
|
|
|
|
|
|
|
|
|
Basic |
|
$ |
0.38 |
|
|
$ |
0.37 |
|
|
Diluted |
|
|
0.38 |
|
|
|
0.36 |
|
|
|
|
|
|
|
|
|
|
Adjusted net income |
|
|
|
|
|
|
|
|
|
Basic |
|
$ |
0.52 |
|
|
$ |
0.54 |
|
|
Diluted |
|
|
0.52 |
|
|
|
0.53 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Management has provided the above reconciliation of net income
to adjusted net income as an additional measure that investors can
use to compare operating performance between reporting
periods. Management believes this reconciliation provides a
useful presentation of operating performance as discussed in the
section "Use of Non-GAAP Financial Measures" above.
|
|
|
CONMED CORPORATION |
RECONCILIATION OF REPORTED NET INCOME TO ADJUSTED NET
INCOME |
Twelve Months Ended December 31, 2012 and
2013 |
(In thousands except per share amounts) |
(unaudited) |
|
|
|
|
|
|
|
|
|
2012 |
|
|
2013 |
|
|
|
|
|
|
|
|
|
|
Reported net income |
|
$ |
40,481 |
|
|
$ |
35,939 |
|
|
|
|
|
|
|
|
|
|
Costs associated with termination of a product
offering |
|
|
- |
|
|
|
2,137 |
|
|
|
|
|
|
|
|
|
|
Facility consolidation costs |
|
|
7,052 |
|
|
|
6,489 |
|
|
|
|
|
|
|
|
|
|
|
Total
cost of sales |
|
|
7,052 |
|
|
|
8,626 |
|
|
|
|
|
|
|
|
|
|
Administrative consolidation costs included in other
expense |
|
|
6,497 |
|
|
|
8,750 |
|
|
|
|
|
|
|
|
|
|
Costs associated with purchase of Nordic region
distributor |
|
|
704 |
|
|
|
- |
|
|
|
|
|
|
|
|
|
|
Costs associated with purchase of a business |
|
|
1,194 |
|
|
|
- |
|
|
|
|
|
|
|
|
|
|
Legal arbitration and patent dispute costs included in
other expense |
|
|
1,555 |
|
|
|
3,206 |
|
|
|
|
|
|
|
|
|
|
Pension settlement expense |
|
|
- |
|
|
|
1,443 |
|
|
|
|
|
|
|
|
|
|
|
Total
other expense |
|
|
9,950 |
|
|
|
13,399 |
|
|
|
|
|
|
|
|
|
|
Loss on early extinguishment of debt |
|
|
- |
|
|
|
263 |
|
|
|
|
|
|
|
|
|
|
Adjusted expense before income taxes |
|
|
17,002 |
|
|
|
22,288 |
|
|
|
|
|
|
|
|
|
|
Provision (benefit) for income taxes on adjusted
expenses |
|
|
(5,829 |
) |
|
|
(7,473 |
) |
|
|
|
|
|
|
|
|
|
Adjusted net income |
|
$ |
51,654 |
|
|
$ |
50,754 |
|
|
|
|
|
|
|
|
|
|
Per share data: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Reported net income |
|
|
|
|
|
|
|
|
|
Basic |
|
$ |
1.43 |
|
|
$ |
1.30 |
|
|
Diluted |
|
|
1.41 |
|
|
|
1.28 |
|
|
|
|
|
|
|
|
|
|
Adjusted net income |
|
|
|
|
|
|
|
|
|
Basic |
|
$ |
1.83 |
|
|
$ |
1.83 |
|
|
Diluted |
|
|
1.80 |
|
|
|
1.81 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Management has provided the above reconciliation of net income
to adjusted net income as an additional measure that investors can
use to compare operating performance between reporting
periods. Management believes this reconciliation provides a
useful presentation of operating performance as discussed in the
section "Use of Non-GAAP Financial Measures" above.
|
|
CONMED CORPORATION |
RECONCILIATION OF INCOME FROM OPERATIONS TO ADJUSTED
INCOME FROM OPERATIONS |
(In thousands) |
(unaudited) |
|
|
|
|
|
|
|
|
|
|
|
Three months ended December 31, |
|
Twelve months ended December 31, |
|
|
2012 |
|
2013 |
|
2012 |
|
2013 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Reported income from operations |
|
$ |
17,016 |
|
$ |
16,181 |
|
$ |
65,210 |
|
$ |
56,508 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Costs associated with termination of a product offering
included in cost of sales |
|
|
- |
|
|
- |
|
|
- |
|
|
2,137 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Facility consolidation costs included in cost of
sales |
|
|
2,533 |
|
|
2,137 |
|
|
7,052 |
|
|
6,489 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Administrative consolidation costs included in other
expense |
|
|
3,053 |
|
|
2,447 |
|
|
6,497 |
|
|
8,750 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Medical device excise tax |
|
|
- |
|
|
1,536 |
|
|
- |
|
|
5,949 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Costs associated with purchase of a business |
|
|
476 |
|
|
- |
|
|
1,194 |
|
|
- |
|
|
|
|
|
|
|
|
|
|
|
|
|
Costs associated with purchaseof Nordic region
distributor |
|
|
- |
|
|
- |
|
|
704 |
|
|
- |
|
|
|
|
|
|
|
|
|
|
|
|
|
Legal arbitration and patent dispute costs included in
other expense |
|
|
- |
|
|
995 |
|
|
1,555 |
|
|
3,206 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Pension settlement expense |
|
|
- |
|
|
1,443 |
|
|
- |
|
|
1,443 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted income from operations |
|
$ |
23,078 |
|
$ |
24,739 |
|
$ |
82,212 |
|
$ |
84,482 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating Margin |
|
|
|
|
|
|
|
|
|
|
|
|
|
Reported |
|
|
8.5% |
|
|
8.0% |
|
|
8.5% |
|
|
7.4% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted |
|
|
11.5% |
|
|
12.2% |
|
|
10.7% |
|
|
11.1% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Management has provided the above reconciliation as an
additional measure that investors can use to compare financial
results between reporting periods. Management believes this
reconciliation provides a useful presentation of financial measures
as discussed in the section "Use of Non-GAAP Financial Measures"
above.
|
|
CONMED CORPORATION |
RECONCILIATION OF REPORTED NET INCOME TO EBITDA &
ADJUSTED EBITDA |
(in thousands) |
(unaudited) |
|
|
|
|
|
|
|
|
|
|
|
Three months ended December 31, |
|
Twelve months ended December 31, |
|
|
2012 |
|
2013 |
|
2012 |
|
2013 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income |
|
$ |
10,897 |
|
$ |
10,227 |
|
$ |
40,481 |
|
$ |
35,939 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Provision for income taxes |
|
|
4,722 |
|
|
4,472 |
|
|
18,999 |
|
|
14,693 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest expense |
|
|
1,397 |
|
|
1,482 |
|
|
5,730 |
|
|
5,613 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Loss on early extinguishment of debt |
|
|
- |
|
|
- |
|
|
- |
|
|
263 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Depreciation |
|
|
4,617 |
|
|
4,952 |
|
|
18,635 |
|
|
18,653 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Amortization |
|
|
7,100 |
|
|
7,228 |
|
|
27,305 |
|
|
28,655 |
|
|
|
|
|
|
|
|
|
|
|
|
|
EBITDA |
|
$ |
28,733 |
|
$ |
28,361 |
|
$ |
111,150 |
|
$ |
103,816 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Stock-based compensation |
|
|
1,538 |
|
|
1,491 |
|
|
5,653 |
|
|
5,593 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Costs associated with termination of a
product offering included in cost of sales |
|
|
|
|
|
|
|
|
|
|
|
|
|
- |
|
|
- |
|
|
- |
|
|
2,137 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Facility consolidationcosts included in cost of
sales |
|
|
2,533 |
|
|
2,137 |
|
|
7,052 |
|
|
6,489 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Administrative consolidationcosts included in other
expense |
|
|
3,053 |
|
|
2,447 |
|
|
6,497 |
|
|
8,750 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Costs associated with purchaseof a business |
|
|
476 |
|
|
- |
|
|
1,194 |
|
|
- |
|
|
|
|
|
|
|
|
|
|
|
|
|
Costs associated with purchase of Nordic region
distributor |
|
|
- |
|
|
- |
|
|
704 |
|
|
- |
|
|
|
|
|
|
|
|
|
|
|
|
|
Legal arbitration and patent dispute costs included in
other expense |
|
|
- |
|
|
995 |
|
|
1,555 |
|
|
3,206 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Pension settlement expense |
|
|
- |
|
|
1,443 |
|
|
- |
|
|
1,443 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted EBITDA |
|
$ |
36,333 |
|
$ |
36,874 |
|
$ |
133,805 |
|
$ |
131,434 |
|
|
|
|
|
|
|
|
|
|
|
|
|
EBITDA Margin |
|
|
|
|
|
|
|
|
|
|
|
|
|
EBITDA |
|
|
14.3% |
|
|
13.9% |
|
|
14.5% |
|
|
13.6% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted EBITDA |
|
|
18.1% |
|
|
18.1% |
|
|
17.4% |
|
|
17.2% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Management has provided the above reconciliations as additional
measures that investors can use to compare financial results
between reporting periods. Management believes these
reconciliations provide a useful presentation of financial measures
as discussed in the section "Use of Non-GAAP Financial Measures"
above.
|
|
|
CONMED CORPORATION |
Fourth Quarter Sales Summary |
(in millions) |
|
|
|
|
Three Months Ended December 31, |
|
|
|
2012 |
|
2013 |
|
Growth |
|
|
Constant Currency Growth |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Orthopedic surgery |
|
$ |
107.0 |
|
$ |
107.7 |
|
0.7 |
% |
|
2.2 |
% |
General surgery |
|
|
76.3 |
|
|
76.8 |
|
0.7 |
% |
|
1.2 |
% |
Surgical visualization |
|
|
17.9 |
|
|
18.9 |
|
5.6 |
% |
|
5.6 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
$ |
201.2 |
|
$ |
203.4 |
|
1.1 |
% |
|
2.1 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
Single-use products |
|
$ |
160.0 |
|
$ |
161.5 |
|
0.9 |
% |
|
2.0 |
% |
Capital products |
|
|
41.2 |
|
|
41.9 |
|
1.7 |
% |
|
2.4 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
$ |
201.2 |
|
$ |
203.4 |
|
1.1 |
% |
|
2.1 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
CONMED CORPORATION |
|
Twelve Months Sales Summary |
|
(in millions) |
|
|
|
|
|
Twelve Months Ended December 31, |
|
|
|
2012 |
|
2013 |
|
Growth |
|
|
Constant Currency Growth |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Orthopedic surgery |
|
$ |
413.9 |
|
$ |
410.2 |
|
-0.9 |
% |
|
0.1 |
% |
General surgery |
|
|
286.6 |
|
|
286.7 |
|
0.0 |
% |
|
0.5 |
% |
Surgical visualization |
|
|
66.6 |
|
|
65.8 |
|
-1.2 |
% |
|
-0.9 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
$ |
767.1 |
|
$ |
762.7 |
|
-0.6 |
% |
|
0.2 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
Single-use products |
|
$ |
611.2 |
|
$ |
609.0 |
|
-0.4 |
% |
|
0.4 |
% |
Capital products |
|
|
155.9 |
|
|
153.7 |
|
-1.4 |
% |
|
-0.8 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
$ |
767.1 |
|
$ |
762.7 |
|
-0.6 |
% |
|
0.2 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
CONTACT: CONMED Corporation Robert Shallish Chief
Financial Officer 315-624-3206
CONMED (NASDAQ:CNMD)
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